Hi sorry to bother but this is my first year as an S Corp and just realized its not as straight forward as I thought. My service company gets paid via 1099s from the companies that hire me. My company then pay me via a W2. When filing for my company it asks me for my payroll taxes under compensation and benefits - I'm having difficulty understanding what the payroll taxes are exactly and am worried I might do this wrong. Is it the taxes withheld on my W2? If not what are my payroll taxes and where can I find them?
Payroll Reporting
Report the following payroll-related expenses:
- Employer's portion of Social Security and Medicare taxes
- FUTA (Federal Unemployment Tax)
- SUI (State Unemployment Insurance)
Under current law, employers and employees each pay 1/2 of the Social Security tax and 1/2 of the Medicare tax on employees' wages. The employer share of Social Security tax is 6.2% and the Medicare tax is 1.45%, for a total of 7.65%. The Social Security tax is payable up to the first $142,800 of wages; the Medicare tax does not have an upper limit and applies to all wages.
Federal unemployment tax is paid by the employer at the rate of 6.2% of employee wages (including corporate officers) on the first $7,000 of each employee's wages. The tax is paid quarterly to each state taxing authority as State Unemployment Insurance (SUI) and is actually an advance payment of the federal tax. Each state sets local rates based on various factors.
The federal unemployment tax applies to the first $7,000 of each employee's wages (including corporation officers). State unemployment amounts may vary from state to state.
Ok ... you really should talk to a local tax pro or payroll company but here is the short version:
On the 1120-S you will enter :
>wages as reported on the W-2 paid to all employees and owner on separate lines
>payroll taxes the company paid on the wages paid to employees ( this is the portion of the FICA taxes paid by the company and NOT the amounts withheld from the employees wages as reported on the quarterly 941 forms) plus any FUTA & SUTA taxes paid by the business on the wages
If you have not properly been filing quarterly and annual payroll tax reports ( forms 940, 941, state forms) then RUN to a local professional to be educated ASAP.
Payroll Reporting
Report the following payroll-related expenses:
- Employer's portion of Social Security and Medicare taxes
- FUTA (Federal Unemployment Tax)
- SUI (State Unemployment Insurance)
Under current law, employers and employees each pay 1/2 of the Social Security tax and 1/2 of the Medicare tax on employees' wages. The employer share of Social Security tax is 6.2% and the Medicare tax is 1.45%, for a total of 7.65%. The Social Security tax is payable up to the first $142,800 of wages; the Medicare tax does not have an upper limit and applies to all wages.
Federal unemployment tax is paid by the employer at the rate of 6.2% of employee wages (including corporate officers) on the first $7,000 of each employee's wages. The tax is paid quarterly to each state taxing authority as State Unemployment Insurance (SUI) and is actually an advance payment of the federal tax. Each state sets local rates based on various factors.
The federal unemployment tax applies to the first $7,000 of each employee's wages (including corporation officers). State unemployment amounts may vary from state to state.